Can I Earn Tax Credits for My New Furnace?

For many homeowners, there usually seems to be a long list of home improvement projects that they want to get done or new ideas they’d like to give a shot. While some may not be necessary, furnace replacement is one project that may be key to keeping your home comfortable throughout the cooler months in Phoenix.

Getting a new furnace is a large investment. You’ll absolutely see the return-on-investment on your indoor comfort along with your energy bills, but it might be a tad overwhelming at first. The good news is that when you select a new energy-efficient furnace, you could be eligible for a federal tax credit.

According to ENERGY STAR®, the Non-Business Energy Property Tax Credits were prolonged through December 31, 2020. In order to get the tax credit, you must buy a furnace that has earned the ENERGY STAR label. However, it can’t be a furnace that is labeled ENERGY STAR for “U.S. South Only.” When shopping for furnace replacements, look for heat pumps with the ENERGY STAR rating so you can be sure you’re picking a high-efficiency furnace.

At Dial One Mears Air Conditioning & Heating Inc, we’ll help you determine an option that meets your needs and ensures you qualify for this tax credit. While ENERGY STAR products designate high efficiency, it’s important to confirm the furnace you select has an Annual Fuel Utilization Efficiency (AFUE) greater than 95, in order to qualify for the tax credit. AFUE indicates the percent of heat produced for every dollar of fuel consumed.

Qualifying for the tax credit is not going to be the only savings you’ll receive when you select a new high-efficiency furnace. Some of the most efficient products can save you hundreds of dollars on your utility costs all year long. And your household will also have greater confidence in your HVAC system to help your home stay at just the right temperature.

If you come across questions regarding your eligibility for a tax credit, or if there are additional local savings you might be eligible for by installing a new high-efficiency furnace, give our experts at Dial One Mears Air Conditioning & Heating Inc a call at 602-789-3315. You may also visit ENERGY STAR or contact your local utility organization if you have questions about other eligible home products.